10/15/2026
The growing U.S. national debt has become an increasingly common topic in financial headlines, and understandably so. Total federal debt (which includes debt held by the public as well as intragovernmental debt) recently surpassed $40 trillion.[1] The Congressional Budget Office (CBO) projects that federal debt by the public will reach approximately $32.1 trillion, or 101% of GDP, by the end of fiscal year 2026, and rise to 120% of GDP by 2036, which would surpass the record set during World War II.[2]
While it is natural to wonder whether the national debt is too high, we believe it is more useful for investors to ask: What does this growing debt burden mean for the economy and financial markets, and how should an investment portfolio be positioned to navigate the potential consequences?
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The growing U.S. national debt has become an increasingly common topic in financial headlines, and understandably so. Total federal debt (which includes debt held by the public as well as intragovernmental debt) recently surpassed $40 trillion.